Morgan Stanley Likes Short-to-Mid Curves in India, Indonesia
(Bloomberg) -- Morgan Stanley favors India and Indonesia rates at present levels due to attractive real yield differentials, according to Tuesday note.
- Co. recommends buying Indonesia’s 7.875% notes due April 2019 and India’s 6.84% securities maturing December 2022, both currency unhedged, strategists including Gordian Kemen wrote in note
- Carry-driven demand from foreign investors will probably remain strong amid easy global liquidity, but BI or RBI monetary policy is unlikely to become easier in near time,
- Steepening after RBI meeting has made valuations become more attractive
- Short-dated South Korean govt paper became increasingly attractive if swapped into the dollar
- Co. suggests buying 1-year KTBs asset swapped into the dollar
- Co. prefers closing 10-year Argentina Botes long position, shifting to front end of the curve to capture yields above 16%
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HALISTER1Source: BFW (Bloomberg First Word)
People Gordian Kemen (Morgan Stanley)
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